Day 24

I ran into my first speed bump in business math–calculating the shifting relationship between gross margin, expenses, profits, markdowns, markups, wholesale cost and selling price.  I get the right answer some of the time, but I also get the wrong answer some of the time. A few wrong answers seem unimportant, until I realize that I may be making  business decisions based on similar calculations. Deciding on a pricing structure based on faulty math could be more serious than a few wrong answers on a math quiz would suggest.

In Intro to Brewing, it was on to adjuncts–technically any additive that provides fermentable sugars, such as corn, rice or dextrose syrup. Adjuncts are sometimes added for economic reasons: barley is expensive compared to rice or corn, so the more money you can save during brewing is more money you can either leave in your pocket or pass on to your customers.

Sometimes adjuncts are used for stylistic purposes. Since the toasted barley husk adds colour and some flavour to beer, adjuncts will lighten the colour and lower the “taste profile”. Think of any mass market American or Canadian lager as an example.

And sometimes adjuncts are added for a combination of both reasons.

If we do use adjuncts, we will have to calculate how much will provide the same amount of fermentable sugar as a given amount of barley. And that would be more math…

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